Lowell & T mobile debt for a long time ago

JB91

Hi Guys

your site has gone some way in inspiring me to face up to 2 marks on my credit report that need sorting out.

They are not for particularly large amounts of Money but they have stopped me from getting any credit and will no doubt have an effect on future hopes of mortgages etc. i feel now is the time to grow up and tackle these debts against my name, however im not sure how to go about doing it.

the first debt is from a company called Lowell and they claim i owe them £195.00. This debt i believe stems from and dispute i had with T-mobile from around 2009. i lost my mobile phone a few days before the end of my contract and phoned T mobile to report to block my phone until the end of my contact (a few days later) they asked if i would like a new sim card to which i refused as i did not want to carry on my contract.

i took a new contract with a different provider a week or so later and carried on as normal. about 6 months later i received a letter from a debt agency stating they are perusing money for a debt on behalf of t mobile. being a young naive lad at the time i threw the letter in the bin and ignored all correspondence up until the present date.

I received a letter from Lowell on 31st March 2016 asking for £195.00 on behalf of EE (t-mobile). i checked my credit report on noddle to see when this debt was first raised only to find that the debt was first noted on April 2015 and the opening balance was £94.00

from this i have two questions to ask;

Do i have a case to dispute this debt?
is it worth disputing this debt over a small amount?

the other debt i have is with Instant Cash loans t/a Payday uk. i took out a payday loan in July 2012 for £162.00. I don't have no excuses for this. i took this out a young lad who didn't really work out the affordability of such a loan and inevitably i messed up with re payments. They haven't actively been perusing me for this debt but its a mark on my credit report which i want to fix.

which is the best way to repay this debt? any advice on if i could negotiate a smaller fee?


i hope this make sense but if you feel any more info would be of use i am more than happy to supply.

Thank you

JB

National_Debtline

Hi JB

If the Lowell debt does relate to the T Mobile debt from 2009 it’s possible it shouldn’t even show on your credit file at all now. Around the time you started missing contractual payments T Mobile should have placed a default mark on your credit file but that would drop off entirely after 6 years. They certainly shouldn’t add a new default many years later.

You can ask Lowell to correct your credit file by removing the default. You can also ask the credit reference agencies to look into the matter if you have any issues.

If you haven’t made a payment or acknowledged this debt for at least 6 years and if you haven’t been taken to court it would be statute barred. That means it would be unenforceable in court and you will not have to pay it if you don’t want. You can send Lowell the following sample letter:

www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-%28sole-name%29.aspx

Regarding the pay day loan, if you pay it off in full it will be updated to show as satisfied. You can alternatively offer a reduced amount called a full and final settlement, and your credit file would then show the debt as partially satisfied if the offer is accepted. There is a sample letter here you can use to make a full and final settlement offer with, based on how much you can afford:

www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

Make sure you get written confirmation from the creditor that they accept your full and final settlement before making a payment, if you decide to go that route.

James
@natdebtline

sourcrates

Think James has pretty much covered everything you wanted to
Know there OP.

JB91

James

Thank you very much for the swift response.

So on my credit file its has no sign of ever having a debt with t mobile (that I can see)

Im sort of leaning towards the position of just paying off the small amounts in both and be done with it. This is a daft question I'm sure but if I was to pay both the debts in full would my credit rating improve it would I have to wait 6 years from full settlement before that occurs?

JB

National_Debtline

I thought you were saying the T Mobile debt had been added to your credit file again in April 2015, which shouldn't happen if you actually defaulted in 2009.

Whether you pay a debt in full or partially, the debt should only show on your credit file for 6 years from the original default date and then drop off completely. Once it's dropped off if will no longer be a factor in credit applications. If you've already defaulted on a debt, paying it off should not mean it stays on your credit file for an extra 6 years.

In terms of credit score improving it's very subjective as each credit reference agency creates their own credit score for you as a rough guide. These credit scores aren't seen by potential lenders when you apply for credit. A lender would assess your credit history based on their own criteria and make lending decisions based on that. Very generally, paying a debt off is likely to have a positive effect on credit applications compared to an unsatisfied default.

James
@natdebtline